Fotheringham also revealed that the deal would have been longer if manager Glenn Roeder had got his way.
"To be honest with you I think the club would have liked me to stay longer," added Fotheringham.
"There was interest from other clubs, but it was way back in December when I told Glenn I wanted to stay at the club, I feel settled, it feels like home now."
I definitely don't want to be part of a team that's losing here and there, always a couple of points off relegation
Mark Fotheringham
After a season of struggle, in which Norwich avoided relegation by just three points, Fotheringham said he felt he had more to achieve at Carrow Road.
The Scotsman said: "I want to look back on my career and say I was part of a team that went to the play-offs at Wembley, or went up to the Premier League.
"I definitely don't want to be part of a team that's losing here and there, always a couple of points off relegation."
Fotheringham admitted the dressing room anecdotes of some of his team mates give him an incentive to succeed.
"I sit and listen to Adam Drury and Darren Huckerby talk about the success they've had, It's been disappointing that since I've come in we've not achieved anything," he said.
Roeder has confirmed that Fotheringham will remain as club captain.
"He will continue to be our captain and our driving force and he will be looking to lead us to a top six finish," said Roeder.
"He's an excellent player who has turned out just as importantly to be a superb captain."
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Interview: Mark Fotheringham talks to BBC Radio Norfolk
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